From Bloomberg Briefs
The following is a Q and A conversation with Polsinelli's Bobby Guy and Bloomberg Briefs' Aleksandrs Rozens.
Q. Are you seeing an uptick in healthcare restructurings
? Is it hospitals
or providers of services to hospitals and their vendors?
A. There was a fairly significant uptick
at the end of last year. This year, it has fallen off. Distress in the health care market has fallen in the last two quarters. The very robust M & A market and the low cost of capital is allowing a lot of companies to weather the current industry changes for the moment.
Q. What's driving the M & A activity? Are people buying distressed assets before a business actually hits the wall?
A. Improvements in technology and the Affordable Care Act are changing the delivery of services. You've got a lot of capital chasing yield right now. A lot of strong, large health care companies and systems are looking for opportunities to expand or increase. You have a lot of smaller players who are at risk because they need the capital to keep up.
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